Your credit report is your financial history; it includes a record of all debt you carry, as well as reports about late payments, loan defaults and other credit problems. If you have never taken out loans, applied for credit cards or held other accounts in your name, you may not have a credit history. Unfortunately, getting a Visa or Mastercard with no credit history can be as difficult as getting one if you have a bad credit report.

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Steps

1

Build a credit history before applying for a Visa or Mastercard. Even a small amount of positive credit experience on your credit report will increase your chances of qualifying for a major credit card.

Applying for a retail store or gas station credit card. These cards are typically easier to get. They offer lower limits and more usage restrictions, making them less risky for the lender.

Purchase an expensive item on payment plans to build your credit history. Make a large down payment, then pay regularly on the balance until it is paid off. You can often get this type of financing on items such as household appliances and furniture.

Take out a small loan with a bank or credit union where you have an account. If you do not have a bank or credit union account, open one before applying for the loan. Make your payments on time to build a good credit record.

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2

Talk to a loan officer at your bank or credit union about a secured Mastercard or Visa.

The lender gives you a card with a low credit limit. To minimize the risk, you deposit the amount of your limit into an account at the bank. If you miss a payment, the bank is authorized to withdraw the money you owe from that account.

Request a credit card that has no fees or charges. If there are fees, they should not be greater than interest you earn from the account that holds your secured money.

3

Find a cosigner with a good credit history to get your first Mastercard or Visa. This could be a parent, relative or friend who is willing to put your name onto their credit card.

As an authorized user on your cosigner's account, you will immediately benefit from access to credit.

Hold the account jointly for some time to establish your own credit history before applying for an account on your own.

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Tips

Apply for a credit card while you are still enrolled in college full time. Lenders are more lenient in accepting applicants without an established credit history when the applicant is a student.

Warnings

Holding a joint credit account is risky for both parties. Each person entrusts his credit with another person. If both parties maintain good credit, this is fine; if either party misses payments, the credit scores of both are lowered.

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